After Initiation Of Moratorium U/S 14 Of IBC, No Assessment Proceedings Can Be Continued By EPFO: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that once a moratorium is imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC), no assessment proceedings can be continued by EPFO. The case involved EPFO continuing its proceedings against a corporate debtor under the Code, despite the moratorium being in place. The NCLAT emphasized that the moratorium halts all legal proceedings, including recovery actions by EPFO, until the insolvency process is completed. This decision reinforces the protection provided to corporate debtors under IBC and ensures that statutory authorities comply with the moratorium’s provisions.